RNS Number : 6690X
  Defined Capital Return Fund Ltd
  26 June 2008
   

    The Defined Capital Return Fund Limited
    Preliminary announcement of the unaudited results for the period ended 30 April 2008

    Incorporation
    The Company is a closed-ended investment company incorporated in Jersey on 17 August 2004. Admission to the official list of the UK
Listing Authority and dealing in shares commenced on 1 November 2004. The Company has a fixed life expiring on or about 30 October 2009.

    Investment objective and policy 
    The investment objective of the Company is to provide ordinary Shareholders with a defined capital payment per share of 136.49 pence
('Defined Capital Return') at the winding-up date. This return will be contingent on the level of the FTSE 100 at the end of the life of the
Company. Provided that the FTSE 100 on the winding-up date is not below 85 per cent. of its level on the start date of 4,615.40 (the "Start
Value"), Shareholders will receive the Defined Capital Return on or soon after 2 November 2009.

    The Company has and will continue throughout its life to be invested in a portfolio of at least 6 medium term floating rate notes
("Bonds") which pay interest gross. The interest received from these Bonds is used to meet ongoing costs and to fund payments due under the
FTSE Transaction which it has entered into with UBS AG ("FTSE Transaction Counterparty"). Under the FTSE Transaction, the Company swaps
periodic amounts based on the interest return received by it in respect of the Bonds with the FTSE Transaction Counterparty. In addition,
under the FTSE Transaction, the FTSE Transaction Counterparty is (provided that the final FTSE level is not below the break-even level)
obliged to pay an amount which, together with the principal amounts payable on redemption of the Bonds, is intended to provide the final
capital entitlement. If however, the final FTSE level is below the break-even level, no payment is due from the FTSE Transaction
Counterparty under the FTSE Transaction and, instead the Company is obliged to pay an amount to the FTSE Transaction Counterparty, which amount is intended to be funded from the principal amounts payable on
redemption of the Bonds.

    A default by an issuer of a Bond would adversely affect the Company's ability to meet its objectives. In addition, in the event of a
sale or early redemption of a Bond (other than a partial redemption for the purposes of paying the Ongoing Costs or meeting redemption
requests), for example, if the Directors elect to dispose of a Bond in the event of the downgrading of the long term credit rating of the
Approved Financial Institution issuing that Bond below the Specified Credit Rating, the Company will seek to reinvest the proceeds in other
Bonds paying interest at the same rate and on the same dates and having the same principal amount as the Bond sold or redeemed. If the
Company is unable to acquire any such replacement Bonds, it will seek to reinvest in other bonds with characteristics as closely comparable
as practicable with such Bonds. In such circumstances, its ability to make the required floating rate payments under the FTSE Transaction
may be adversely affected.

    A failure by the Company to meet its obligations under the FTSE Transaction could give rise to an obligation on the Company to make a
termination payment to the FTSE Transaction Counterparty. Such a payment would adversely affect the Company's ability to meet its investment
In the absence of unforeseen circumstances, the investment objective and policies of the Company will be adhered to throughout the planned
life of the Company. The investment objective and policy set out above will only be changed with the consent of a majority of Shareholders.

    The final capital entitlement is only payable at the winding-up date. If at the winding-up date the final FTSE level is at least equal
to 85 per cent. of the Start Value then the final capital entitlement will be equal to the Defined Capital Return. If the final FTSE level
is below 85 per cent. of the Start Value, the final capital entitlement will be reduced on a straight line basis from the Defined Capital
Return down to zero when the final FTSE level is less than or equal to 25 per cent. of the Start Value.

    As at 30 April 2008, the FTSE stood at 6,087.30 and the index cover was 1.55166 times, this representing the extent to which the FTSE
was higher than the level required for Defined Capital Return to be paid.

    If the winding-up date was 30 April 2008, the accrued entitlement as at that date would have been 124.30 pence per share.

      The Defined Capital Return Fund Limited

    Balance Sheet (Unaudited)

    As at 30 April 2008

                                                                  
                                             Notes    30 April      31 October
                                                      2008          2007
                                                      �             �
 Assets                                                           
 Non-current assets                                               
 Financial assets (at fair value through                          
 the profit or loss account)                                      
 Securities                                  3        27,610,300    27,658,900
 Derivative instruments                      4        6,251,730     5,013,250
 Prepayments                                 7        80,894        161,786
 Prepayment of Directors fees                         4,565         9,130
                                                                  
                                                      33,947,489    32,843,066
                                                                  
 Current assets                                                   
 Cash and cash equivalents                   5        194,934       152,435
 Other receivables                           6        677           6,591
 Prepayments                                 7        162,625       165,432
 Prepayment of Directors fees                         9,130         9,130
                                                                  
                                                      367,366       333,588
                                                                  
 Total assets                                         34,314,855    33,176,654
                                                                  
                                                                  
 Liabilities                                                      
 Non-current liabilities                                          
 Provisions                                  9        30,000        30,000
                                                                  
 Liabilities (excluding net assets                                
 attributable to holders                                          
 of ordinary shares)                                  30,000        30,000
                                                                  
                                                                  
 Net assets attributable to ordinary         16       34,284,855    33,146,654
 shareholders                                                     
                                                                  
 Number of ordinary shares in issue          8        28,000,000    28,000,000
                                                                  
 Net Asset Value per ordinary share          16       1.2245        1.1838


      The Defined Capital Return Fund Limited

    Income Statement (Unaudited)

    For the period 1 November to 30 April 2008
    (Comparatives are stated for the period 1 November 2006 to 30 April 2007)


                                               Notes    2008         2007
                                                        �            �
 Revenue                                                           
 Interest income                               10       4,107        2,162
 Gain on financial assets (at fair value       11       2,018,160    1,087,187
 through the profit or loss account)                               
                                                                   
 Total revenue                                          2,022,267    1,088,349
                                                                   
 Expenditure                                                       
 Management fee                                13       55,847       55,540
 Administration fees and expenses              13       15,936       15,849
 Custodian fees                                13       3,411        3,392
 Directors fees                                         4,565        4,565
 Audit fees                                             5,700        5,700
 Interest on FTSE transaction                           776,040      694,911
 General expenses                                       22,567       37,354
                                                                   
 Total expenditure                                      884,066      817,311
                                                                   
 Increase in net assets attributable to                 1,138,201    271,038
 ordinary shareholders                                             
                                                                   

    There are zero earnings attributable to the management shares.

    
 



      The Defined Capital Return Fund Limited

    Statement of Changes in Net Assets Attributable to Ordinary Shareholders (Unaudited)

    For the period 1 November to 30 April 2008

                                                                          2008
                                                                             �
                                                                  
 Balance at 1 November 2007                                         33,146,654
                                                                  
 Increase in net assets attributable to ordinary                     1,138,201
 shareholders                                                     
                                                                  
 Net assets attributable to ordinary shareholders at 30             34,284,855
 April 2008                                                       
                                                                  
                                                                  
                                                                  



    For the year ended 31 October 2007

                                                                          2007
                                                                             �
                                                                  
 Balance at 1 November 2006                                         32,242,093
                                                                  
 Increase in net assets attributable to ordinary                       904,561
 shareholders                                                     
                                                                  
 Net assets attributable to ordinary shareholders at 31             33,146,654
 October 2007                                                     
                                                                  
                                                                  
                                                                  
    

 

      The Defined Capital Return Fund Limited

    Cash Flow Statement (Unaudited)

    For the period 1 November to 30 April 2008
    (Comparatives are stated for the year ended 31 October 2007)

                                            Note    2008           2007
                                                    �              �
 Cash flows from operating activities                            
 Increase in net assets attributable to             1,138,201      904,561
 ordinary shareholders                                           
 Adjustments for:                                                
 Interest income                                    (4,107)        (6,482)
 Gain on financial assets (at fair value            (2,018,160)    (2,593,133)
 through profit or loss account)                                 
                                                                 
 Operating result before working capital            (884,066)      (1,695,054)
 changes                                                         
                                                                 
 Decrease in trade and other receivables            94,152         185,862
 (Decrease)/increase in trade and other                            -
 payables                                                        
                                                    (789,914)      (1,509,192)
                                                                 
 Interest income                                    828,280        1,579,478
 Deposit interest received                          4,133          6,026
                                                                 
 Net cash generated from operations                 832,413        76,312
                                                                 
 Net increase in cash and cash equivalents          42,499         76,312
 Cash and cash equivalents at beginning of          152,435        76,123
 period                                                          
                                                                 
                                                                 
 Cash and cash equivalents at end of year   5       194,934        152,435
                                                                 
 Cash and cash equivalents made up of:                           
 Cash at bank                                       194,934        152,435
                                                                 

    The company has undrawn credit facilities of �350,000.


























This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
IR DQLFLVQBFBBF

Defined Capital Return Fund (LSE:DCR)
Gráfica de Acción Histórica
De May 2024 a Jun 2024 Haga Click aquí para más Gráficas Defined Capital Return Fund.
Defined Capital Return Fund (LSE:DCR)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024 Haga Click aquí para más Gráficas Defined Capital Return Fund.